Chinese co to buy Complete Genomics for $117.6 million

(Reuters) - Complete Genomics Inc GNOM.O said it would be bought by China’s BGI-Shenzhen for $117.6 million, three months after the gene sequencing company started a strategic review.

Shares of the company rose 16 percent to $3.09 in morning trade, a little below the $3.15 per share offer, which represents a premium of 18 percent to the stock’s Friday close.

Intense competition from bigger players like Life Technologies Corp (LIFE.O) and Illumina Inc (ILMN.O) and a cut in funding by the National Institutes of Health for basic science research have hurt smaller gene sequencing companies like Complete Genomics and Pacific Biosciences (PACB.O).

Mountain View, California-based Complete Genomics had in June said it was exploring strategic options, including a sale, and would cut about 20 percent of its workforce.